Mon, Jan 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Commodity markets continue to offer investors value in February - Credit Suisse Asset Management

Thursday, March 10, 2011
Opalesque Industry Update - Commodity markets continued to increase in February despite mixed global macroeconomic conditions. Prices were supported by inflationary concerns and strong emerging markets demand amidst tight inventory levels for raw materials.

Nelson Louie, Global Head of Commodities at Credit Suisse Asset Management, said, “Uncertainty in the Middle East and North Africa remains high. The focus of the ever-changing situation shifted from Tunisia and Egypt to Libya. As a result, concerns that unrest would spread to oil-producing countries were materialized. As February came to a close, the situation in Libya remained uncertain and speculation continued as to how events there would unfold. This led to a sudden spike in oil prices late in the month, which weighed on equity markets, at least temporarily. It was not surprising to see a ‘flight to safety,’ with precious metals performing quite strongly.”

Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Fundamentals for many key commodities continue to improve due to a combination of strong demand and a variety of supply shocks, which have exacerbated already tight inventories and have helped to shrink limited excess capacity. Amidst this backdrop, we believe commodities are poised to serve investor portfolios well. We also believe investors will continue to benefit from the diversification benefits commodities provide.”

The Dow Jones-UBS Commodity Index Total Return rose 1.32% in February. Overall, 11 of the 19 index constituents increased in value. Despite negative performance in January, the Precious Metals sector was the strongest group in February, up 9.07% as a result of Silver’s stellar performance, gaining 19.97%. Precious metals increased as a result of renewed inflationary concerns. Similar to the previous month, Agriculture continued to do well, rising 0.95%, mostly as a result of Cotton’s gains in a tight inventory environment.

The Credit Suisse Total Commodity Return Strategy group periodically produces updates on relevant industry topics. For a copy of their white paper, “How Commodities Can Help Investors Face the Uncertainty of the Inflation/Deflation Debate”, please email ir.betastrategies@credit-suisse.com.

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Amplitude's Klassic CTA up 29% in 2016[more]

    Benedicte Gravrand, Opalesque Geneva: Swiss CTA manager Amplitude Capital can boast outperformance for one of its short-term trading strategies. The Klassik strategy, which trades equities, FX, fixed income and commodities, returned 29.39% in

  4. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  5. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock